To effectively use variances to improve operations,management should take the following steps except:

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Adding variances together to determine the impact on financial statements is not an effective step because it does not provide useful information for improving operations. Instead, management should focus on analyzing the cause and effect of variances and taking appropriate action based on this analysis. Breaking down variances by usage and price is also important in understanding the root causes of variances.

To Effectively Use Variances to Improve Operations,management Should Take the Following